N.J. Agent Gets 7 Years For Fraud
NU Online News Service, May 24, 3:59 p.m. EDT?The former owner of a Southern New Jersey insurance brokerage firm, accused of embezzling close to $2 million in premium payments, will have to spend seven years in prison and pay his former clients back.[@@]
Philip A. McKeaney Jr., 44, of Cherry Hill, N.J, was sentenced to seven years in State prison and ordered to pay $1.16 million in restitution to the businesses he defrauded, said New Jersey Attorney General Peter C. Harvey. The sentence came last week after Mr. McKeaney pleaded guilty to charges of theft and misappropriation of funds back in November of 2003.
Mr. McKeaney, the owner and chief corporate officer of Haddon National Companies Inc., in Pennsauken, N.J., diverted more than $1.6 million dollars in payments to self-insured health benefits plans and tax payments to his own personal use. HNC was the third-party administrator of the plans.
The executive was also accused of withholding payment of personal income tax, unemployment and disability insurance to the state.
A total of nine corporations were defrauded by Mr. McKeaney. The major victim was Memorial Hospital of Salem County, with $541,737 stolen.
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